Q4 2022 AltaGas Ltd Earnings Call
Okay.
Good morning, ladies and gentlemen, thank you for standing by.
Welcome to the Altra gas fourth quarter and full year 2020 financial results Conference call.
My name is Michelle and I will be your operator today.
All lines have been placed on mute to prevent any background noise.
If you have any difficulties hearing the conference. Please press star zero for operator assistance at any time.
After the Speakers' remarks, there will be a question and answer session.
And as a reminder, this conference call is being broadcast live on the Internet and recorded.
I would now like to turn the conference over to Adam Mcknight Director Investor Relations. Please go ahead Mr. Mcknight.
Thanks, Michelle and good morning, everyone.
Thank you for joining us today for Alta Gas's fourth quarter and full year 2022 financial results Conference call.
Speaking on the call. This morning will be Randy Crawford, President and Chief Executive Officer, and James <unk>, Executive Vice President and Chief Financial Officer.
We're joined here. This morning by we're also joined here. This morning by Randy Toone Executive Vice President and President of our midstream business and Blue Jenkins Executive Vice President and President of our utilities business as well as Jon Morrison Senior Vice President Investor Relations and corporate development.
We'll proceed on the basis that everyone has taken the opportunity to review the press release and the fourth quarter results.
Previous quarters, we have published an earnings summary presentation that you can find on our website.
Presentation walks through the quarter and full year results and highlight some of the key year over year variances and nonrecurring items that we would assume would be helpful for the market to understand.
As always today's prepared remarks will be followed by an analyst question and answer period, and I'll remind everyone that we will be available after the call for any follow up questions are detailed modeling questions that you might have.
As for the structure of the call will start with Randy Crawford, providing some comments on our financial performance and progress on our strategic priorities, followed by James harmless, providing a more detailed walk through our fourth quarter results, our near term outlook and 2023 guidance and then we'll leave plenty of time at the end for some Q&A.
Also before we begin I need to remind everyone that we will refer to forward looking information on today's call. This information is subject to certain risks and uncertainties as outlined in our forward looking.
Information disclosure on slide two of our Investor presentation.
Which can be found on our website.
More fully within our public disclosing disclosure filings on both the SEDAR and Edgar filing system and with that I'll now turn the call over to Randy Crawford.
Thank you Adam and good morning, everyone.
Once again too.
2022 was a strong year for all of the gas as we achieved several significant milestones across our platform.
I am proud of the strong financial and operational performance that we delivered over the course of the year.
Our operating results build upon a strong foundation of growth that we delivered the past three years and is a testament to our diversified model that continues to demonstrate strong advantages through market cycles and operating environments.
The ultra gas business performed exceptionally well in 2022, despite some challenges and volatility in Asia to North American butane spreads and other factors during the second half of 2022.
Our 2020 financial results were within the upper half of our guidance guidance ranges with normalized EPS growth of 10% year over year and normalized EBITDA growth of 5%.
Our utilities business achieved a U S <unk>.
18% year over year EBITDA growth to.
So the ongoing capital investments to core infrastructure on behalf of customers and the addition of new meters through new customer connects and strong asset optimization activity.
Yes.
Our average utilities rate base increased to $5 2 billion through our continued investments in our network and is focused on improving system safety and reliability.
While also reducing emissions to deliver better environmental outcomes.
We continue to benefit from the population growth with approximately 17000, new customer connects added in the year across our network.
Also in our utility segment.
Successfully closed the sale of N star.
To our departing colleagues in Alaska.
For your many contributions to building a strong utility dedicated to safe and reliable service you provide to your customers.
In our midstream business, we continue to capitalize on the tremendous opportunity to export LPG used to Asia and to meet the rising demand for responsibly produced LPG from Canada with.
We significantly advanced our global export capability with the acquisition of the remaining equity stake in petrol gas and the Ferndale facility.
This reaffirmed our position as the leading provider of LPG exports off the west coast.
And we were able to fund the transaction with recycled capital using the funds that we received from the sale of a non operating interest in the Aitken Creek facility.
Our export platform, despite experiencing some market and inflationary headwinds in the second and third quarters of 2022.
<unk> finished the year strong delivering a 14% year over year increase in export volumes delivering over 100000 barrels a day of propane and butane to markets in Asia.
And under four years since <unk> was first commissioned we have steadily grown our global LPG export capabilities.
Combined exports from our two facilities in 2022, now makes up almost 16% of Japans and 14% of South Korea total LPG imports.
And they're integral to the achievement of this volume milestone was the strategic decision to charter Vlccs.
Charter in ships has provided cost certainty and significant flexibility associated with the loading of ships, particularly when we decided to utilize the ship with both Ferndale and rip it.
In 2023, we are expecting the previously announced delivery of two new dual fuel B L. G sees.
The dedicated vessels are projected to reduce shipping costs by over 30% compared to prevailing market rates and reduced pricing volatility.
The vessels can carry 15% larger cargo cargos than a standard VLCC.
And as such.
Vessel deployment will extend altra gasses reach into the Asian market for its products increased flexibility.
Drive reduce cost and provide environmental outcomes and better environmental outcomes and position our export platform for future growth.
Given the immense logistical challenges around moving that many barrels from the WCS b to the west coast and doing so in a safe manner.
I'm extremely proud of the achievement.
Cheating or volume milestone and the tremendous work our team has put in to reach this accomplishment.
Our financial performance is a testament to our diversified business model, which produces lower risk high growth platform that continues to demonstrate resiliency through market cycles and periods of volatility, while providing our shareholders with steady and growing earnings and cash flow.
We continue to strengthen our balance sheet and financial flexibility with the closing of the divestiture of the Alaskan utilities yesterday and we expect.
To approach our medium term buybacks net debt to normalized EBITDA target.
As we look ahead to 2023, we welcome the return of strong demand fundamentals that are being seen in Asia as the economies continue to reopen and we expect the return of strengthening Asian LPG pricing premiums that were realized in the fourth quarter to continue through 2023 and beyond.
We agreed to a new tolling arrangement from an investment grade counterparty in Asia at Ripon and extended our long term tolling structure by five years until 2033 at Ferndale underscoring the market value and credibility of ultra gas export platform and Canada's reputation for reliable supply.
We look forward to continuing to connect our Canadian and Asian customers to increase long term tolling arrangements in the years ahead.
We are proud of the role for gas plays in providing access to affordable and diverse energy sources, both domestically within North America and to global markets. We remain steadfast in our strategy and are firmly committed to leveraging our strategically positioned utilities and midstream assets significant organic growth opportunities.
You can expect ultra gas to maintain a high degree of capital and cost discipline as we continue to invest in our utility networks and make the strategic investments of our midstream and global export platform as we continue connecting customers and markets.
And with that I will turn the call over to James to review the financial results in more detail.
Thank you Randy and good morning, everyone.
As Randy mentioned, we are very pleased with the operational financial results that we were able to deliver in 2022 and the strong progress that we made on our strategic priorities.
We achieved normalized EPS of <unk> 63 in the fourth quarter and 189 for the full year.
Sending us in the upper end of our 2022 guidance range of 180 to 195, which represented a 10% increase year over year.
Normalized EBITDA for the fourth quarter came in at $454 million and $1 54 billion for the full year, which was also in the upper half of our 2022 guidance range of one five to $1 55 billion.
Our normalized <unk> per share was $1 32 for the fourth quarter and approximately $4 28 for the full year.
Digging into our operating segments for the quarter utility segment again reported strong normalized EBITDA growth of $294 million in the quarter as compared to $238 million in the fourth quarter of 'twenty, one a 24% increase year over year.
The significant growth was underpinned by strong asset optimization activities that Washington gas a stronger U S. Dollar interim rates associated with the Virginia rate case that came into effect in December the ongoing investment in our networks through our ERP programs and colder weather.
These positive attributes were partially offset by higher operating and administration costs.
We continue to upgrade our infrastructure in the fourth quarter with the deployment of $272 million of invested capital, including $90 million deployed through our various ERP programs.
These programs are focused on improving the safety and reliability of the system, providing long term operating costs and environmental benefits and lower risk growth for our shareholders.
In 2022, we delivered on our planned utility network upgrade with $824 million of capital invested in our systems driving rate base growth of approximately 12% year over year.
The rate base growth was higher than expected, but it is important to note that it included working gas in storage at a higher weighted average cost of gas, which is also captured in our higher debt balance and elevated working capital as a result of this factor.
Given the recent reduction in natural gas prices. This will decrease working capital needs and debt balances as we enter the shoulder season, and our gas inventories are replenished at lower prices.
Washington gas realized normalized EBITDA of $233 million in the quarter, an increase of 27% over last year.
The strong year over year growth was driven by the strong asset optimization activity the interim rates at Virginia ongoing ERP investments colder weather in DC and customer growth.
This was partially offset by higher O&M costs.
Semco and stars combined normalized EBITDA was $67 million in the third quarter, which was up 12% over Q4 of 'twenty, one as colder weather in Michigan and customer growth was only partially offset by higher O&M costs.
Finally utilities benefited from the strengthening of the USD to Canadian exchange rate in 2022 of approximately $20 million year over year in the fourth quarter.
Normalized midstream EBITDA came in at $163 million compared to $95 million in the fourth quarter of 2021 higher earnings in the global export business was driven by strong volume growth and higher realized propane margins that were partially offset by lower realized butane spreads and higher rail.
And ocean freight logistics costs.
We also realized higher earnings at our extraction facilities, driven by higher Frac spreads higher power revenue at her mountain as a result of strong power prices and lower operating and administrative expenses.
These.
Positive items were partially offset by lower margins in the marketing business. The lost EBITDA associated with the Aitken Creek sale and a write down of natural gas inventory and storage.
In the fourth quarter of 2022, we exported approximately 97000 barrels per.
Per day of propane and butane to Asia spread across 16 Vlccs.
This included approximately 63000 barrels per day of propane exported from Rip It and 34000 barrels per day of butane and propane exported from Ferndale.
As we highlighted on our third quarter call, we acted to significantly reduce the amount of butane that we export at Ferndale to our minimum volume commitments due to the softer pricing we experienced in the back half of 2022.
As we look ahead, we continue to have a positive outlook for the structural advantage for LPG is off the west coast and that Asia will remain the premium global market for LPG.
We continue to actively derisk, the midstream platform and reduce commodity price exposure and volatility where appropriate.
In addition to the new and extended tolling arrangements that Randy highlighted I would reiterate what I shared on the third quarter earnings call and that we will be disciplined with our hedging practices within global exports and are focused on locking in structural pricing differences on a rolling basis for our merchant volumes.
We are approximately 75% hedged for our expected global export volumes inclusive of told barrels for the first three quarters of 2023 at an average <unk> and North American price of approximately $12 per barrel U S for our expected and propane propane and butane volumes. This includes strong.
Hedging in the shoulder periods of the second and third quarters.
We also expect to be active hedging out fourth quarter volumes in the coming months as we complete the annual NGL re contracting season, which starts on April one.
Finally, we have the two VLCC time charters that are expected to be completed at the end of this year and the start of 2024, which will help reduce and stabilize our shipping cost by approximately.
'twenty by approximately 30% on one third of our export volumes.
Corporate and other segment reported a normalized EBITDA loss of $3 million compared to a gain of $1 million in the fourth quarter 'twenty one.
The $4 million year over year decrease was driven by higher operating expenses.
Turning to our balance sheet and capital recycling yesterday, we closed the divestiture of our Alaska and utilities to try summit.
Which will reduce consolidated leverage by approximately $1 $1 billion Canadian including the transfer of the sinks and notes to the buyer and expected cash taxes.
As we have previously indicated sale proceeds will initially be used to reduce debt, while providing ultra gas with the financial flexibility to advance its strong portfolio of growth opportunities across the midstream and utilities platforms over the coming years.
The Alaskan utilities had been part of Ulta guest since 2012 and have a long history of delivering safe reliable and affordable energy to their customers operating with an industry, leading safety record and driving positive outcomes for all of our stakeholders.
Thank you to the entire D deal team on the successful closing and transition to the new owner.
We will miss working with our friends in Anchorage, Kenai, with Scilla, and Homer and we wished him immense success in the next chapter.
In terms of other developments earlier this week the mountain Valley pipeline received a favorable biological opinion from the U S fish and Wildlife service.
The consortium expects to receive the incremental permits and approvals over the coming months and we'll be positioned to mobilize construction crews in the summer of 2023 and have the pipeline in service by the end of this year.
As previously disclosed we view our investment in the pipeline as a potential divestiture candidate to further deleverage and move towards the company's long term debt targets.
In February we reached an agreement with southern California Edison to extend our contract on the Black facility from January one 2024 through to December 31 2027.
We believe that the arrangement reiterate the long term demand for life to provide stable and affordable power supply and support California's longer term energy needs.
Looking ahead, we continue to focus on delivering durable and growing EPS and <unk> per share, while lowering leverage ratios and increasing margins of safety within the business over time by moving towards our medium term goal of reaching five times net debt to normalized EBITDA.
We are maintaining our 2023 guidance ranges, which.
Which include normalized EPS of 185 to 205 per share and normalized EBITDA of one five to $1 6 billion.
And with that I will turn it over to the operator for the Q&A session.
Thank you Sir.
Ladies and gentlemen, we will now conduct the analyst question and answer session.
If you would like to ask a question. Please press Star then the number one on your telephone keypad.
If your question has been answered and you would like to withdraw from the queue. Please press star followed by the number too.
There will be a brief pause while we compile the Q&A roster.
Your first question comes from Jeremy Tonet of Jpmorgan. Please go ahead.
Hi, good morning.
Hey, good morning, Jeremy.
Just wanted to touch base on the LPG export a little bit more great to see kind of a bit more contraction. There just wondering if you could I guess <unk>.
To expand a bit more on appetite for kind of longer term contracts. There. How you think about duration versus price that youre willing to accept and do you have kind of targets for duration that you want to hit here over time.
Hi, Jeremy it's Randy Toone.
Obviously, we are trying to get more long term tolling.
Our goal is to get 10% to 15 years out of our tolling program.
And we have to look at what customers have taken kind rates out of the port.
You usually don't have that much taking sign rates are that long. So those are usually three to five years, but through our north client facilities or her mountain those are longer term and those are what we're focusing on.
Got it that's helpful. Thanks, and then.
Randy wanted to kind of pivot towards the towards the LDC in Maryland, and DC, Maryland, specifically.
It seems like with the new Governor there the environmental policy could be kind of under review and the dialog on gas has been kind of evolving in the state there.
We did see support out of the PSC for gas there with chairman Stanek.
Great article there, but just wondering I guess your thoughts in.
For <unk>.
<unk> in Maryland over time, how you see things evolving how you how you think.
Think about the risk there.
Well Jimmy hate this is Randy and thank you for the question I.
Appreciate it that's good to talk to you I'm going to let you know.
President of utility Blue Jenkins address that.
Yeah, Hey, Jeremy it's blue Yeah. Good questions. We haven't we've had a good relationship with the PSC and the legislative bodies in Maryland, and we expect that will continue with governor more.
As we get to know him and work with him you certainly correctly highlighted he is working his way through the process of updating the mix on the PSC and we're optimistic.
Optimistic in the conversations there that they understand the balance between ensuring that they can have.
Safe reliable supply while the region works through its.
It's emerging ecosystem transition I'll frame it that way so we certainly see pressure.
From a macro level, but the conversations we have suggest to us that just as chairman stanek put forward.
The individuals who make key decisions understand the balance and they need to to get that right over time and so we're optimistic the governor mourn his his new appointments will continue down that.
Balanced approach.
Got it that's helpful. Thanks, and then just the last one from me on blighted seen congratulations getting the the.
Deal there it seems that that would enhance.
The value of that asset and as we think about further divestitures to reduce leverage just wondering how you see.
Interest in Blyth or other assets at this point in the path to hitting your leverage targets.
Hey, Jeremy.
And I'm really proud of the team at Blythe and how they continue to just demonstrate the value of that asset going forward.
They are more strategic question.
James go ahead and address.
Specifically.
Jeremy.
We've always identified life in MVP is as assets that we would consider monetizing to move closer to our ultimate debt targets to be below five times debt to EBITDA.
Obviously this this four year contract extension reaffirms are.
Confirms the importance of life in terms of California's power needs and providing that at affordable prices. We're not obviously in the process of doing any kind of price discovery on that asset, we're very happy to continue to own it and operate it and obviously this gives us some certainty out to 2027 MVP, obviously was the other one in the.
Michael opinion was a was an important milestone with respect to that project and are in discussions with our with our midstream with our partners at Echo trends.
They are pretty optimistic that they're going to get the remaining federal permits that are required to make forward progress on that pipeline and get a complete by the end of 2023, so that would be the other monetization candidate that we would we would consider especially as we get as we start to get clarity on the in service date for MVP.
And Jeremy I will just add.
As you know.
With respect to MVP, so in our judgment, whether it whether it's the end of the year or sometime next year.
We believe the pipeline will get built and it's necessary as you know in the consumers on the east coast are certainly going to benefit from that.
The consumers certainly would benefit.
Thank you both very much that's been helpful. Thank you.
Thank you.
Your next question comes from Robert Kelly at CIBC Capital markets. Please go ahead.
Hey, good morning, I Wonder if.
You cannot just.
WILDBERRY, what you think the blueberry rubber first nation agreement means for your midstream business.
Capital projects in particular.
Okay.
In the event that.
You are successful in securing new capital projects, how do you go about funding those given the capital requirements of the utility segment.
So Robert.
Robert It's Randy Toone.
Yes, so we do think the blueberry first nation.
Announcement is encouraging for that area. The permits haven't been released for almost a year, but.
But we did see record permits being reduce your late Q4 and early in Q1, so that is a positive development.
Well, we can see from the the agreement, it's about collaboration and our industry.
Industry working together to develop.
Sustainably and having existing infrastructure is very important so we you know our existing infrastructure there.
Has some latent capacity in our processing. So we see that is attractive to our two area producers and also our north Pine Fractionator is full and we see that our near term expansion is going to occur there, but when I look at that expansion. It's a bolt on expansion, it's very capital efficient and in it.
Be big dollars, but I'll turn it over to James to talk about kind of where the capital come from thanks Randy.
Robert obviously with and start closing now in the $1 $1 billion of deleveraging.
Created some balance sheet capacity for us.
Obviously, we can we can borrow to fund any expansion projects within midstream and then obviously count on the incremental EBITDA when it comes online to to help us with those leverage metrics the other.
Item that you touched on is obviously the diversified platform that we operate between midstream and utilities, we've made a lot of capital investments within the utilities through the AARP programs to improve reliability and safety on the system. So that allows us to flex capital up and down if we start to see capital needs on the midstream platform with strong risk adjusted returns so.
Those would be the two levers that we would use to be able to to fund growth projects that we see on the midstream side. After we've we've got clear line of sight in terms of the latent capacity that exists there.
Okay.
A couple of questions on the export business here.
Given the volatility we've seen in the last couple of years.
Has your appetite.
For securing some vlccs increased.
A portion of your current needs covered with the ships that are coming in at the end of the year, but.
Since you made that decision the freight seems to have gotten more volatile.
Second question related to that what are you doing to.
Prove.
Cost profile on the logistics side.
Hi, Robert So Randy Toone.
Yes, so the vlccs the time charters, we actually did a time charter through 'twenty two one time charter and we did see about $50 million worth of cost savings. So we do see the value of of.
Taking away the price volatility with Baltic freight, but also just having commercial control of those of the <unk> has been a benefit to us. So we look forward to the two new ships coming at the end of the year and we are always looking for opportunities to do further time charters, we just have to balance that with our current XP.
<unk>.
Demand and.
We will look for opportunities to grow that.
On the on the other logistics.
Piece, we are working with our service provider on rail to help.
I'll have more efficiency there reduce our costs we are looking at that.
We were hit with an R. 22 is the fuel surcharge. So we are looking at taking the volatility of that away with effective hedging.
And we have hedges in place already for that so we do see some of that volatility not happening in 'twenty three.
Yes, and Rob I'll just add this is Randy really see.
<unk>.
And essentially we are seeing some of the logistics cost coming down and as Randy mentioned, we're taking those steps to further mitigate those risks.
Those long term leases in the vessels and the shipping cost.
And also exploring some sharing mechanisms.
To mitigate some of those rail.
You did ask a question about some of the de risking I want to make a point as you saw in our prepared remarks that we've continued to move toward increased tolling and one in particular are demand pull that we've talked about them and.
And to us that's a pivotal point, but where we demonstrated the scale in that platform and when we take the Canadian production, which is in clear view of the Asian market.
And as we see we see more of this coming with the volatility in the access to supply.
And clearly in a lot of product comes out of Bellevue and has its logistics ceilings, but in.
In addition to be in longer dated and getting to the Asian market. So.
<unk> of our Canadian model to go directly off the west coast to the market in very short order is extremely compelling to both our producers and the demand market and I think when we expect that.
That derisking to continue.
Yeah.
I agree and geopolitics <unk> further.
Last question from me I, just want a clarification on the Ferndale throughput marketing agreement. So that's different than a tolling agreement is that correct in other words, it's really it sounds like the volume commitment rather than.
Recurring both volume and price.
No. It's Randy Toone again, not that it's similar to a tolling arrangement. So yeah. I think you can considered a tolling.
Okay. Thank you.
Youre welcome. Thank you.
Ladies and gentlemen, once again, if you would like to ask a question. Please press star one at this time.
Your next question will come from Robert Kwan at RBC capital markets. Please go ahead.
Thanks, Good morning, everybody.
If I can start with the export business and just the Derisking.
First question is can you talk about how much of your capacity is under tolling in 2023 versus 2022, and then when you look at the hedge program.
So you have added a lot of hedges since you released guidance hedge.
Hedge rates are a little bit.
Peter.
And guidance as well, but how does that compare to what was.
Embedded in guidance.
Just in terms of the additional hedges Nevada.
Hi, Robert its rent tune.
The derisking.
Our goal is to get a clue.
230% to 40% tolling come.
<unk> April one 2023, so we are in the middle of the re contracting for four for the new year and we are pursuing additional.
Additional tooling and so are we.
Good line of sight to be closer to that 40% tolling by that date.
And so that's that's our goal to help derisk the platform.
And also very very active hedging program.
We are hedging at attractive rates, but I'll turn it over to James to talk about is that within the guidance range.
Yeah, Robert James here, So in terms of when we released guidance and where we see the curve right now and some of the hedges that we've put in place the shoulder seasons have been a little stronger for us relative to guidance and obviously butane pricing is a little bit stronger for us relative to guidance and Thats why we layered on some some butane hedges and youll see that in the <unk>.
We put in our press release and especially in Q4.
Propane is very much in line with guidance right now, but we continue to see that strengthening as the year progresses, especially in the back half and that's when we'll start to layer in some some hedges that we expect will be slightly above our assumptions when we put out when we put up mid point guidance.
Hi.
And then Jameson type that you hear what would that be like what with the similar commentary on the frac spread side, where you're pretty significantly increased hedges as well for 23, yeah, Yeah, frac spread is slightly stronger than our than when we set guidance and slightly stronger on a Canadian dollar equivalent basis, just given the strengthened.
Exchange rate and when we probably probably about 50 stronger.
Got it.
Sorry, Randy just coming back to your line of sight to getting 40% once you get to the NGL year, where are you right now and then where are you for 2022.
In 2022.
Roughly 20% totaling a out of the 300000 barrels a day that we export it.
And I would say that we're more than halfway to our target.
But there's a lot of activity that will happen through March.
While we do some re contracting here so.
Got it.
And then I guess just overall when we look at guidance you've talked Tom touched on some of the items here, but what are some other.
<unk> and headwinds.
But youre seeing versus what you had in December there was a lot of cash.
<unk> commentary today on higher O&M costs I'm, just wondering how Q4 realized versus what you embedded in guidance for 'twenty three on that specific line as well.
Yeah, I mean look I think that with respect to O&M, we've kind of signaled in Q3 that we were going to take active measures to mitigate O&M and Randy toone touched on some of the things that we're looking at with respect to hedging the fuel surcharge, obviously Baltic freight has come off a little bit we're going to be taking delivery of one <unk>.
<unk>. So we chart in the back half of the year and we'll get a small benefit at the end of 'twenty, three but with respect to overall tailwind and headwinds Robert FX was one of the the tailwind is that okay.
Clearly touched on it's probably about <unk> stronger than where we set our budget. When we released guidance. We touched on continued strength on the propane and butane side.
In terms of headwinds though.
We've had a soft and very mild winter.
Start 2023 at the utilities in the jurisdictions, where we don't enjoy weather normalization and that's predominantly DC in Michigan.
<unk> also seen asset optimization come off a little bit relative to our expectations to start the year as a result of mild weather. So those are some of the headwinds that we face.
When you look at those on an overall basis, that's why we feel comfortable confirming the original range at this point.
Okay. That's great. Thank you very much.
Thank you.
This concludes the Q&A portion of today's call I would now like to turn the call back to Mr. Mcknight. Please go ahead.
Thanks, Michele thanks, everyone. Once again for joining our call today and for your interest in ultra gas.
That concludes our call. This morning, and I hope you enjoy the rest of your day you may now disconnect your phone lines.
Okay.
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Got it.
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Right.
Thanks.